Can Outsourcing be Reversed in an Obama Administration?
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When U.S. President Barack Obama was just campaigning several months ago, he gave an impression that he is anti-outsourcing although the business process outsourcing (BPO) industry is hoping for the best, that the elected president will mean better trade ties.
President Obama said that the government should stop providing tax breaks for companies that are shipping jobs overseas and give those tax breaks to companies that are investing in the country. He particularly made that stand in front of workers who have been displaced in manufacturing jobs as a result of the North American Free Trade Agreement (NAFTA) during a debate with rival Senator Hillary Clinton in Cleveland, Ohio. Obama also said that he will ensure that every pact the U.S. signs will have environmental, safety and labor standards to protect workers and consumers alike.
In light of this view by Obama, he also highlighted that outsourcing of American jobs overseas cannot be reversed as revolutions in communications and technology have sent jobs wherever there is an internet connection that have forced U.S. workers to compete for jobs with children in Bangalore, India and Beijing, China. He also highlighted that it is a fact that we live in a more competitive world and that is a fact that cannot be reversed. The government must invest in research and innovation to create jobs and industries as the country’s problems on economic front cannot be overcome by building protectionist walls.
According to Counterpunch, even Obama’s main rival Senator Hillary Clinton believes that outsourcing brings as much economic value to the U.S. as to the country where services are outsourced even though she was against outsourcing at the beginning of her political career. President Obama is both for free trade and fair trade, for globalization and for job creation in the U.S. as he is on the progressive end of the Democratic Party.
Up to now, no politician has shown leadership on the issue of globalization and outsourcing as it would mean that they must challenge the power of global financial firms, many of whom are their biggest campaign contributors. Obama said, “The issue of outsourcing is a genuine and important issue but to refer to one country was, I think, an error” during a campaign pertaining to India. He was criticized for lack of judgment for someone who is very aware of the way racism functions in U.S. society.
One country which is the most concerned about the leadership style of President Obama is India as it gets more than 60 percent of its outsourcing work from the U.S. On the bright side, the chairman of NASSCOM, Ganesh Natarajan, said that the country is already seen as a good partner for the U.S. and he thinks President Obama will take it as an opportunity rather than a defeatish approach.
Author: Carlo L.
Tags: Obama-outsourcing, Reverse Outsourcing
January 21st, 2009 at 10:13 pm
Why does it appear that no one seems to notice that many companies from foreign countries create jobs in the U.S. that are filled by Americans?
January 29th, 2009 at 4:40 am
I agree with Steve. Offshore outsourcing can compliment companies in the U.S. not just in terms of employment but also in revenue generation which taxes may help the entire economy.
February 9th, 2009 at 2:17 pm
[...] Can Outsourcing be Reversed in an Obama Administration? [...]
March 2nd, 2009 at 2:45 am
I hope and wish all outsourcing would cease to a halt. If companies want to outsource they should be taxed heavily. Outsourcing is taking away jobs from the American people, food off the tabes and education away from our children. You cant tell me that ousourcing if good. If you think so try loosing your job not because you didn’t do your job well, but because someone else would do it cheaper. Now your children are crying because you can’t feed them, your home is forclosed on because you can’t pay your mortgage and oh your precious car! bye bye becauase you cant make your payments. Oh now that you don’t have a job say bye bye to your health insurance and no Cobra for you because you can’t make the monthly payment on unemployment checks alone!
Before you open your mouth and make anymore foot in mouth comments think about the consequences first…
March 9th, 2009 at 4:37 am
Andrea:
Does that mean that foreign companies should stop their outsourcing too?, i.e., stop making investments that create U.S. jobs. Isn’t what’s good for the goose good for the gander?